Centre cleares 32 FDI proposals

New Delhi: The Central Government approved 32 foreign direct investment (FDI) proposals envisaging an inflow of Rs. 845.70 crore in foreign exchange.

Of this, a major chunk of Rs. 450 crore is accounted for by Oriental Structural Engineers, which proposes to set up a holding company.

Among the proposals cleared by Finance Minister P. Chidambaram on the recommendations of the Foreign Investment Promotion Board (FIPB) is the permission granted to Television Eighteen India to launch three regional business news channels — CNBC TV18 South, CNBC TV18 Gujarati and CNBC TV18 Channel 3 — without involving any fresh FDI inflow.

However, a decision on the proposal by U.S.-based Dow Jones & Company to set up a wholly-owned subsidiary for publication of facsimile editions of foreign newspapers was deferred.

Likewise, the proposals of two other media companies, Lokmat Newspapers and Prithvi Prakashan, were also deferred. Lokmat had sought permission for inviting FDI for conversion of its operating company into an operating-cum-holding company to make further downstream investments.

The proposal was also for the Government’s nod for allotment of additional shares pursuant to the scheme of de-merger of the publication business, to be approved by the Bombay High Court. Prithvi Prakashan’s proposal related to the business of publishing newspapers, magazines and periodicals, journal books and FM broadcasting.

The proposals two other media companies, Vijay Television and Star India, however, were cleared.

While Vijay Television had sought permission for downstream investment in a company engaged in uplinking non-news current affairs TV channels, Star India’s proposal was for uplinking and downlinking of channels and transfer of shares to non-resident shareholders.

Among the major proposals approved, German foods brand Dr. Oetker has been allowed to bring in Rs. 110.40 crore for further downstream investment while S. Kumar’s group company Reid & Taylor’s has received the nod for the allotment and issue of equity share warrants to fetch Rs. 108.33 crore in foreign direct investment.

The proposal of Oil India Limited (OIL) for conversion of an operating company into an operating-cum-holding company and an IPO issue was approved. An official statement here did not indicate the FDI flow involved in the venture.